India Steel Market Watch
November 19: Spot iron ore prices in China sank to their cheapest since July as Shanghai steel prices plummeted to a record low amid mounting fears over wilting demand, industry sources said.
Other China-traded commodities from base metals to rubber were also sold off, reflecting an increasing bearish stance among investors worried over a slowing economy.
Deepening losses in ferrous futures could drag spot iron ore to a new low below $46 a ton, widening losses for the glut-hit commodity, already down nearly 36% this year.
Benchmark 62% grade iron ore for shipment to China's Tianjin Port held steady at $46 a ton.
Amid tumbling prices, the Norwegian mining subsidiary of Australia's Northern Iron Ltd filed for bankruptcy as its $100-million debt has become unsustainable.
A sustained slide in China's steel prices has reduced appetite for iron ore, bloating stocks of the raw material at the country's ports to the highest since May.
Chinese steel demand shrank around 6% in January-October, 2015 according to the China Iron and Steel Association, reflecting slower industrial activity as the world's No. 2 economy heads for its weakest growth in 25 years.
The price of rebar, a construction steel product, has been hitting a series of record lows in Shanghai in recent months amid tepid demand that traders say has led to inflated stocks of steel products in China, forcing more production cutbacks and even closures.
The most-traded May rebar on the Shanghai Futures Exchange closed down 2% at 1,705 yuan a ton after falling as far as 1,692 yuan. It was the lowest for a most-active contract since the bourse launched rebar futures in 2009.
Following are prevailing spot iron ore prices:
Grade % Fe |
Origin |
Product |
load port |
destination |
Nov 19, 2015: cfr ($/ton) |
Nov 18, 2015: cfr ($/ton) |
Nov 17, 2015: cfr ($/ton) |
63.5/63 |
India |
Fines |
Vizag |
Qingdao |
46 |
47 |
47 |
62 |
India |
Fines |
FOB Vizag |
|
14 |
15 |
15 |
62 |
Australia |
PB |
Dampier |
Tianjin |
46 |
47 |
47 |
63.5 |
Brazil |
Fines |
Brazil |
China |
48 |
49 |
49 |
Source: Traders